UK companies sitting on cash

Kate McCann is a reporter at City A.M. She covers politics and insurance and can be contacted at kate.mccann@cityam.com.

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Kate McCann

BUSINESSES in the UK racked up £69bn of unproductive cash in 2012, an eight per cent increase on 2011, a new report from Deloitte has found.

The money is equivalent to a cash injection worth five per cent of the businesses’ total income and is largely the result of inefficient financial and operational practices. Andrew Harris, partner in Deloitte’s finance transformation group, said: “This is a good time to focus on managing basic processes, as it could free up cash for investment.”